The added depth would go along with added cost for the Jacksonville Port Authority.

The Jacksonville Port Authority officially set its sights Monday on a 47-foot ship channel after a consultant called that depth the “sweet spot” for getting shippers to pick Jacksonville and spin off thousands of new jobs.

The unanimous decision by the JPA board, though, will greatly increase the authority’s share of the cost for dredging the ship channel, possibly by as much as $200 million.

But board members said Jacksonville’s 40-foot channel needs another seven feet of water to become a top-level port on the East Coast.

“This is a turning point in the life of this organization,” JPA board member Robert Spohrer said.

An ongoing Army Corps of Engineers study has tentatively determined the federal government can justify paying about 75 percent of the cost for dredging to a 45-foot depth. The corps has not determined an exact cost, but going to 45 feet would cost several hundred million dollars.

By asking the corps to go another two feet deeper, JaxPort is putting itself on the hook for the full cost of the extra two feet of dredging. Port officials put the expense in a ballpark range of $50 million to $100 million per foot of dredging.

A 47-foot channel would move Jacksonville to the same depth as the planned future deepening of the port in Savannah, Ga., which is Jacksonville’s closest competitor.

In Jacksonville, the corps is studying a 13-mile segment of the St. Johns River from the ocean to west of the Dames Point bridge.

The corps expects to wrap up its study in April 2014, at which point it will be up to Congress to authorize the deepening and pay the federal government’s share.

The corps tentatively found that in terms of providing national economic benefits, the federal government would get the biggest bang for its buck with a channel depth at 45 feet. The benefit comes from reduced transportation costs for shippers when ports can accommodate bigger ships for global trade.

Going deeper than 45 feet would result in additional economic benefits, but with diminishing returns on the federal government’s investment, said Jason Harrah, project manager for the corps.

JaxPort officials say they are able to justify more depth based on the impact of additional jobs flowing to Northeast Florida and the state.

John Martin of Martin Associates, the firm doing a strategic master plan for the port, told the board a 45-foot channel “doesn’t give you enough kick to get to that next level.”

He said a 47-foot channel will enable ships to be more heavily loaded while coming in and out of Jacksonville. As a result, Jacksonville could compete for the coveted slot of being the Southeast port where ships load and unload the biggest share of their cargo, Martin said.

His study projected that by 2030, the port would account for 7,611 direct jobs if the channel stays at 40 feet. With a 45-foot channel, the port’s activity would account for 8,337 direct jobs. At 47 feet, it would generate 12,310 jobs. Those are jobs that directly depend on the port such as dock workers and truck drivers.

Martin Associates also calculated the ripple effect of those jobs when those workers spend their paychecks, and their employers buy goods and services.

With a 45-foot channel, the economic activity would result in a total of 21,138 direct, indirect and induced jobs. At 47 feet, JaxPort’s activity would support 30,981 jobs.

Board members said the long-term gains for the region justify asking for 47 feet. “It’s a great opportunity,” said board member Joe York.

The national office of the corps still must agree to JaxPort’s request for the local preferred option.

Interim CEO Roy Schleicher said he will be sending letters from global shipping lines in support of a 47-foot channel.

“It’s not just us saying we need 47 feet,” he said. “It’s the major steamship lines in the world saying we need 47 feet.”

Jacksonville will face competition for federal funds since Savannah and Charleston, S.C., both want deeper harbors for their ports.

@Central Intelligence. Excellent point. Gulftainer was a private partner willing to put its own skin in the game to pay for most or all of the deepening. To this day it is inexplicable to me how their offer of $250M was flatly rejected.

Here we go again with
John Martin of Martin Associates, the firm doing a strategic master plan for the port same company that did the cruise ship and a ferry report more money thrown out the door its a numbers game the Port plays remember when the port claim the blackbeard failed inspection couldnt pass CG muster, but was sold to blue Ibis company and is now profiting from it and The CG passed its inspection of the Blackbeard. As for the dredging claiming more jobs keep in mind Ga port is next door much closer to the ocean than Jaxport who is 26 miles up river hello a ship cannot afford to lose that time in a narrow channel when Savanah is a better choice. what would the impact be to maintain such a deph cost to taxpayers, rouge ships losing steerage in the currents. remember the little jetties its not fixed yet!!!